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Global outlook #3 ”“ New Zealand ”“ Xero, Bringing great experience to accounting

This week in our Global Outlook series we spoke to Sam Daish, General Manager, Data Innovation at Xero, about the development of AI in the accounting sector:

Sam, can you tell us how your business has changed in recent years?

The fundamental change is one of scale. Xero is growing fast. So in the data space our scope to deliver innovation for customers is exploding. At the core of accounting software are products, services and functionalities to make routine accounting activity easier. Easier’ now equals automation. So our core skills around creating easy to use and beautiful products and features are being extended to include machine learning and AI, which also widens and deepens our client offering.

What has enabled this change?

Two things, data and our expertise in AI development. Data really enables us to power beautiful experience for our customers. We work closely with small businesses and our partners to create smart interactions. Machine learning is the engine that uses that data to create tailored experiences to all our customers.

We started our Machine Learning journey back in 2015 with one of our yearly hackathons called Xplore. Those events are all about freedom, fun and discovery.
During this Hackathon, our team, created a machine learning algorithm to streamline account code prediction for invoices.

Rod Dury, our founder, became really enthused by it and was quick to get resources aligned behind it. Rod often says that
“this new solution put Xero on a new pathway as we discovered a problem we didn’t even realise we had”.

The growth of expertise we have in AI today compared to three years ago is amazing to be part of.

What’s the type of problems you’ve been solving?
A good example is the development of customer data augmentation tools. In order to sign-up for Xero businesses only need an email address and an address.

Those are very often the only details we hold on the businesses of our clients. With machine learning we can augment that data automatically by looking at things such as business websites.
Our solution analyses the words used on the website and tag some attributes and areas of interest based on the language used.

For example, it is possible to derive the industry they operate in and whether they have physical shops or are purely digital businesses. That approach has kick started a range of natural language initiatives and changed the way we think about businesses.

What do you do with those data?
Well, it’s a massive lift in how we understand the businesses of our customers, and so what they might need from us. For example, many plumbing businesses are not only interested in plumbing projects. They might also need assistance with regulatory changes in the construction industry more widely.

They might have a retail shop as well as carry out design and plumbing work, so they are not only construction companies they are also retail and professional services companies. We can then develop appropriate tools for those businesses.

Can you tell us about more innovations happening at Xero?

Absolutely. Our data was telling us that small businesses didn’t have time to enter bills in our system. Following the same customer led approach we came up with the email-to-bills functionality that we previewed at Xerocon Atlanta. This optional piece of software will enable users to forward PDF bills from any supplier to their Xero account.

Our solution can recognise accounting figures, suppliers names, VAT, etc. We estimate a 25% time reduction when creating and editing a bill. And bills are just the beginning. Any automation that saves our small business owners time and improves reporting accuracy is worthwhile and worth exploring according to the Xero mentality.

Why is New Zealand a great place for financial technology companies to thrive?

The Fintech space at the moment is all about collaboration and connection – technology is moving at such a pace that you can’t focus on everything. Partnering allows you to access niche capabilities and we are seeing a lot of born from companies working together. It also doesn’t hurt having Fintech NZ pulling us together and making those connections.

Another key benefit for us is that we are able to watch and learn from what is happening in bigger markets like the UK or Australia, so that we can choose the best bits to implement in NZ and then potentially take global.<

While NZ is geographically distant from many markets, technology and diversity closes that distance very effectively. NZ really is a melting pot for so many ideas, experiences and people to come together, and technology helps connect that to the world.

Fintech Workshop – trading internationally

Scottish Development International are organising a one-day Export Workshop to learn the essentials of international trade and assist fintechs in creating a strong export plan to generate growth.
Some of the speakers will include Scottish Development International’s representative from Germany and from The Department of International Trade in The Netherlands.
Content
Fintechs will have access to a step-by-step guide to develop insights into key topics:

  • Market analysis

  • Market entry

  • How to sell online internationally

  • An insight into opportunities in Germany and The Netherlands

  • One-to-one support from SDI’s experts on key areas including trading internationally and digital marketing

  • Plus, it’s the ideal setting to network with other like-minded Scottish businesses

Who’s it for?
This workshop is available for fintech companies based in Scotland with a desire to expand internationally.
When and where?
The workshop will be held at Scottish Enterprise offices in the centre of Edinburgh.
Tuesday 4th December 2018 from 9.15am to 5pm
Scottish Enterprise
Apex House
99 Haymarket Terrace
Edinburgh
EH12 5HD
How do I book?
To register, please follow the link:
Scottish Enterprise’s Export Bootcamp is fully funded for Scottish companies and is part-funded through the European Structural and Investment Funds − investing in a smart, sustainable and inclusive future. You should note that this support is a form of state aid, on attendance it will count towards your overall De Minimis allowance.

Fintech trade mission to Poland

Scottish Development International is helping to promote a Fintech trade mission to Poland, which the Warsaw-based DIT team is organising on 27th-29th November 2018.

Interested companies can join via the link below
https://www.eventbrite.co.uk/e/2018-uk-fintech-trade-mission-to-poland-tickets-50441104702

In brief, the programme of the trade mission will start in the afternoon on 27th November in Warsaw with expert briefings about fintech landscape in Poland. It will also include a joint reception with UK healthtech trade mission at the Ambassador’s Residence.

On 28th and 29th November, UK fintechs will be actively involved (sales pitches,1-2-1 meetings, networking) in Impact Fintech’18  ”“ the largest and most influential international fintech conference in Poland, which gathers key decision makers and influencers (including public sector) in the financial sector. The event will take place in a city of Łódź (1.5 hrs away from Warsaw).

We are expecting a UK Minister to attend the Warsaw reception and Impact Fintech’18 in Łódź.

DIT will secure for trade mission participants: transport from Warsaw to Łódź and 2 night accommodation in Łódź, where the conference takes place.

Please refer to links below for more information about Impact Fintech’18.
Should you have any questions please contact Ewa.Veenendaal-Rawicz@fco.gov.uk

UK FinTech Trade Mission to Zurich and Vienna in January 2019

The 2nd annual UK Fintech Mission to Zürich and Vienna matches senior executives in Swiss, Liechtensteiner and Austrian banks, insurance companies and venture capital firms and the most innovative UK-registered fintech and cybersecurity start-ups to build mutually beneficial business relationships.
€30 million in signed business deals generated from the previous Fintech Missions to Switzerland and Austria.

FinTech Scotland’s Stephen Ingledew and FDATA’s Gavin Littlejohn will join the Zurich Mission.

Switzerland: a leading global centre for finance and fintech

”‹Why Switzerland? Because it is home to over 260 banks. It is also the largest global financial centre for international clients in cross-border wealth management. At the end of 2015, assets under management in Switzerland totalled £5trillion.

Why join us in Zürich? Because it ranked sixth in the 2016 Global Financial Centres Index and 2nd in Europe (after London). Because a third of Switzerland’s 260+ banks have their head offices here. Some 510 banking institutions are also represented in Zurich in one form or another. Representatives from financial institutions in Geneva will be present too. Like Zurich, Geneva is a significant global financial centre. It ranked 4th in Europe and 15th globally on the 2016 Global Financial Centres Index. Geneva’s financial centre comprises some 140 banks. It is also a major centre for asset management. All these financial institutions understand the need to provide innovative digital solutions for their customers. They eagerly await your applications!

Why Austria? Isn’t it more Mozart than Fintech?

”‹The companies which you are pitching to have an extremely high market share across Central and Eastern Europe (CEE). This means that, if they buy your products/services, you could immediately have a presence across upwards of 15 countries. In 2017, CB Insights ranked VC Speedinvest no. 1 most active Fintech VC in the EU, with a €100m fund dedicated to identifying the most innovative companies. Austria is a country of wealthy consumers, with GDP per capita of €38k (vs. €34k in UK). It also has the highest level of smartphone and internet access in the CEE region. The market for Fintech in Austria is projected to reach €588 million by 2020 and Fintech investments in the DACH Region (Germany, Austria and Switzerland) rank 2nd in EU after the UK. Limited domestic expertise means big opportunities for UK companies to get first-mover advantage in the market. Check out our video of last year’s event below:

 

Apply TODAY at www.ukfintechmission.com or contact pat.kunz@scotent.co.uk for further information.

 

REGISTRATIONS CLOSE 31. OCTOBER 2018

Applications are open for global accelerator programme

Article written by Justine Kelly, Vice President, Technology (Americas) for Scottish Development International

MassChallenge is a global accelerator program, headquartered in Boston with additional locations in Israel, Mexico, Switzerland, the UK and Texas.

MassChallenge works with companies across all industries from anywhere in the world, focusing on early-stage companies, with zero equity taken. The accelerator itself is a 4-month program where companies receive hands-on support from top mentors and experts, free co-working space, access to MassChallenge’s network of corporate partners, tailored workshops and office hours, and the opportunity to win cash prizes.

Applications are now open for the 2019 MassChallenge’s Fintech Accelerator (to take place January-June 2019), with a close date of 12th October 2018. MassChallenge FinTech is based in Boston and is looking for industry-focused startups that have raised less than $10M in equity-based funding and generated less than $10M in revenue in the last 12 months. As part of the program, accepted companies will be provided with:

  • 1:1 collaborations with industry-leading partners who will support start-ups with co-development opportunities, product validation, customer connections, strategic investments, and advisor introductions. Partners of MassChallenge Fintech include Citizens Bank, Fidelity Investments, Fintech Sandbox, John Hancock, MassMutual, and Putnam Investments, to name a few.

  • Collaborative office space located in the heart of Boston’s innovation district

  • The opportunity to win a portion of $250K in cash prizes

Interested companies can apply here and using the discount code MCFTEmmett19.

Global outlook #2 – Spain – TheLogicValue

TheLogicValue integrates in a one stop solution the vast majority of financial information that up to date is spread out in expensive and diverse sources. This allows private banks and financial advisors access to data, analysis, risk control and proposals anywhere they go from any device.
Recent legal changes (MiFID II) are requiring advisors to be extremely transparent with their clients, meaning that market data, risk levels, client information”¦ should be integrated in the same tool, TheLogicValue does exactly that allowing parameters to be introduced by the entity to ensure maximum control and security.
Our platform is also fully modular, this way services can be used directly from our platform or be purchased separately via API, depending on personal needs (stocks, funds, pension plans, portfolio tools”¦). The program can be installed within the servers of banks and other entities, insuring data storage and protection of their client’s information.
In addition, our platform handles more than 200,000,000 data information in English, Spanish, French, German and Portuguese from our main supplier Reuters, broken down in:

  • Around 2,000 quoted stocks from 25 countries, 1,122 of which are evaluated by our analysts.

  • More Than 46,000 funds from over 40 countries.

  • Around 35,000 fixed income issues from more than 130 countries.

We can also provide entities with Julia, an online financial advisor that can also be tailored (with more than 900,000 hypothetical questions with a success rate of 85% with a response time of less than 5 seconds) which will help employees be more efficient and productive in there day to day information seek.
“TheLogicValue built a virtual assistant that draws on its wealth of investment and risk analysis data, providing rapid, useful responses to questions from financial advisors and investors.”
“As record-low interest rates eat into returns, banks are under pressure to retain and grow market share. TheLogicValue set out to help banks offer sound investment advice more efficiently”. IBM Watson and IBM Cloud
We are currently working with a few Spanish banks, one of which (Bankia) has more than 8,000,000 clients and is one of the leading banks of the country. As well as being in partnership with IBM.
Winners of the first edition of “Cuatrecasas acelera” a program on the look for legaltech, as well as being subject of a case study carried out by IBM.

4th International Call by Spanish Bank Bankia

Bankia Fintech Program allows startups from all around the world to develop a PoC for one of the most important banks in Spain without moving from their home country.
The organiser, Innsomnia, operates with a No Equity model, so startups can continue freely working for other clients of investors. Innsomnia just extended the deadline for international applications until the 30th of September.
The duration of the program is seven months during which startups will have direct access to the innovation partners of Bankia, and access to mentorship experts.
This call is for companies involved in the following verticals:

  • Solutions for SMEs

  • RegTech

  • Blockchain

  • WealthTech

  • Alternative Scoring

  • Cyber security

  • Artificial Intelligence ”“ Machine Learning

You can find all the information about the Open Call here. You can also speak to FinTech Scotland to be introduced to the team at Innsomnia.

Global outlook #1 – New Zealand – Banqer

Banqer transforms the classroom into a virtual economy
Banqer is an award-winning innovative financial education platform that gives primary and elementary students hands on experience with personal finances.
Through an online classroom currency, Banqer gets kids everywhere curious, creative, and ultimately, confident with money.
The startup was awarded the Child Youth Finance International Economic Citizenship Education’ Award at the Global Inclusion Awards in 2017. Banqer is the first New Zealand company to ever be recognised by the Global Inclusion Awards.
Kendall Flutey, who co-founded Banqer in Christchurch, New Zealand launched the business in January 2015 with four business partners, after developing the concept at a start-up event the previous year.
She says New Zealand needs to ensure educators are comfortable in the digital world and creating a digital-centric educational environment is critical.
Her company partners with Kiwibank, helping more than 63,000 students in Australasia teaching students about saving, investing, borrowing and purchasing by turning the classroom into a virtual economy.
Flutey says one concern she has with ed-tech is that people are confusing digital consumption with digital production ”“ and students need to become future leaders in the digital creation space.
“The other remaining stigma is around girls and tech. We urgently need more females to get into tech as a career. People are doing awesome mahi (work) in this space, but this issue needs to be quashed. It’s the last thing we need. Women who get into tech are doing amazing things.”
Flutey says to crank up to the digital revolution in New Zealand, businesses, organisations and people need to reduce barriers, be it devices, literacy, confidence or capabilities.